United Community Banks, Inc. (UCB) announced the completion of a strategic balance sheet repositioning on September 8, 2026, which includes the sale of its Navitas business unit and a significant restructuring of its investment portfolio.
The company sold Navitas, a multi-state platform, for $2 billion in cash. The transaction closed on September 1, 2026, and generated a pretax gain of $68 million for the third quarter of 2026. This sale, along with a portfolio restructure, is expected to generate approximately $4.2 billion in total cash inflow.
In addition to the Navitas sale, United Community Banks executed a bond transaction to reduce interest rate risk. The company reclassified its held-to-maturity securities to the available-for-sale designation and sold $2.6 billion in book value of securities with a weighted average yield of 2.2% and a duration of 5.5 years. This transaction resulted in a pretax loss of $300 million for the quarter.
Proceeds from these transactions are being used to reinvest in the core banking franchise. The company plans to invest approximately $3 billion into a securities portfolio with a target yield of 4.5% and a duration of two years or less. The company also paid off short-term borrowings and continues to repurchase its own stock.
United Community Banks reported a tangible book value per share of $23.31 as of the second quarter of 2026. The company projects that the combination of the Navitas gain, the portfolio restructure costs, and other investments will impact its tangible book value for the third quarter. The company also provided guidance for its third-quarter net interest margin to be in the low 360s and its operating ROA to be between 1.25% and 1.30%.
